Statement re New Synergistic Investment

25 September 2017

Tern Plc (AIM: TERN)

New Synergistic Investment

Further to the announcement of 11 August 2017, Tern Plc (AIM:TERN), the investment company specialising in the Internet of Things ("IoT"), is pleased to announce that it has successfully completed its investment in InVMA Limited ("InVMA"), an established and growing player in the market for IoT enablement.  InVMA is a key strategic partner for Device Authority Limited, in which the Company has a majority shareholding, and therefore it is expected that InVMA's entry into the Tern portfolio will be a highly beneficial addition.

This investment is in line with Tern's stated objective to invest in dynamic technology opportunities within this exciting market, which will deliver significant returns and create value for shareholders. The directors believe that by bringing together synergistic yet underexploited assets, it creates a potential opportunity for material value growth. 

Tern has acquired a 50% stake in InVMA with an initial cash investment of £250,000.  A further payment of £250,000 is anticipated by 31 October 2017 to maintain this position and a final £500,000 may be due on or before 31 July 2018 based upon InVMA meeting certain sales milestones.  If further payments are not made, Tern's current holding will decrease to 12.5%.

InVMA builds solutions that link connected things to their customers' systems to create new revenue streams, enhance customer satisfaction and improve operational efficiency. InVMA enables an Internet of Things that delivers real business value and competitive advantage. Based on InVMA's latest statutory accounts for the fifteen months ended 31 October 2016, InVMA had net liabilities of £29,183 and a profit of £114,772 after a write back of losses / costs in relation to transactions with related parties.  In the year to 31 October 2017, Tern expects InVMA to achieve contracted sales order bookings of at least £750,000.

Bruce Leith, of Tern plc, said:

"I am delighted that we have made this investment into InVMA. The management team, led by Pat Nash, has a wealth of experience in successfully developing and installing IoT solutions for connected products and connected operations and we look forward to playing a proactive role in helping them grow their organisation."

Pat Nash, of InVMA, said:

"The InVMA management team is delighted to have Tern's financial and strategic support moving forwards.  With Tern's input, InVMA will remain focused on its core objective to build secure applications on a robust, scalable platform to drive business value and deliver competitive advantage."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

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